Rampant skills gaps should be a ‘wake-up call for every leader’ as AI, tech talent shortages hamper growth

HR and learning and development (L&D) professionals across the US, UK, Germany, and Australia are seriously worried about skill shortages.

Only one-in-ten told researchers for Skillsoft's 2025 Global Skills Intelligence Survey that they were fully confident that their workforce had the skills needed to meet business goals over the next 12 to 24 months.

Nearly a third (28%) said they saw skills as the key factor that could make or break their organization’s growth, with leadership, AI, and technology showing up as the most significant shortages.

However, the respondents weren't particularly impressed with the measures their organizations were taking to deal with the skills shortage. Many said they were relying on talent strategies and development programs that were outdated and disconnected from workplace outcomes.

While 85% of respondents have talent development systems in place, only 6% rate them as 'outstanding', and just 20% believe their talent strategies are aligned with organizational goals.

Just under a quarter (24%) are using a consolidated platform approach that provides a clear view of workforce capability. Similarly, respondents complained that their current solutions were fragmented, overly manual, and lacked customization.

“Business transformation depends on the strength, adaptability, and skills of the workforce. These findings should be a wake-up call for every leader,” said Ciara Harrington, chief people officer at Skillsoft.

“Skills gaps are already impeding growth, and traditional approaches to talent development are only worsening the issue.

"To compete in today’s human-AI world, organizations must place skills at the centre of their strategy and evolve toward integrated platforms that connect learning, skills intelligence, and performance in a single place, unlocking a workforce ready for change and innovation.”

AI skills are the biggest problem for UK firms

In the UK, 30% of business leaders reported significant AI skills gaps, ahead of leadership and people management skills at 26%, and technical skills at 18%.

But there was also a big problem with 'overstatement' of skills in these areas. This, respondents noted, was exacerbating skill gaps (39%), reducing team cohesion (36%), and increasing manager stress (33%).

Organizational challenges included poorly-addressed employee engagement issues, cited by 33%, with 27% reporting that their organization was focused on the present rather than planning for the future.

Meanwhile, 26% said employees were being promoted without adequate preparation.

When asked about their future of work concerns, 37% said they feared losing top talent to more agile competitors, 33% cited burnout as a barrier to transformation, and 24% said they’re worried that AI is advancing faster than workforce skillsets.

With AI specifically, 41% said their workforce was resistant to change and 28% said they needed greater technical expertise.

"As workforce needs continue to shift, the research points to the value of connecting skills to every facet of business strategy," the researchers said.

"Leaders who understand their organization’s strengths and gaps – and act on that insight - will be positioned to adapt faster, perform better, and stay competitive in a changing market."

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